PURCHASE ORDER OVERVIEW
Order documents are used to establish or charge encumbrances
within the system. An encumbrance is a reservation,
of a part of an appropriation in anticipation of a purchase
order or contract being approved. Generally, the
authority to encumber is available at the beginning of
the State fiscal year (April 1) and ends at the close
of the fiscal year. Encumbrances continue to be
available for payment until the end of the lapse period
for the fund charged. On that date, appropriations lapse
and no further payments can be made against outstanding
The purchase order is used to:
Place orders with vendors.
Encumber funds for purchases of goods and services.
The purchase order change notice is
Cancel a purchase order.
Correct a vendor name or address.
Increase or decrease the amount of the encumbrance.
Change any part of the account which was incorrect on
the original purchase order.
PURCHASE ORDER DOCUMENT FLOW.
The purchase order
documents are prepared by the agency purchasing unit.
After the documents are prepared, they are batched and
entered at the agency. If OGS approval is
required, the documents are submitted to the Office of
General Services; otherwise, they are submitted
directly to the Office of the State Comptroller.
documents are received they are sent to the appropriate
unit for review and approval.